News

Fresh threat to tax evaders

Tougher fines for tax dodgers could be on the agenda in next month's budget

The government is expected to unveil tougher fines for tax dodgers in next month's pre-budget report, putting more pressure on those with offshore accounts to sign up for the Revenue's "amnesty" scheme.

Last week, HM Revenue & Customs extended the deadline for people to disclose offshore bank accounts from November 30 to January 4.

Under the facility, people who come forward face penalties of only 10% of the tax due, compared with up to 100% under normal circumstances.

As revealed by The Sunday Times in August, the taxman wants to get even tougher, potentially fining evaders more than 100% of the unpaid tax. One option would be to impose penalties of up to half their entire wealth, rather than just a proportion of the unpaid tax.